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JD Sports says "no further relevant information to disclose in relation to an equity capital raise"

The retailer was responding to media reports regarding plans for a £400mln cash call

JD Sports Fashion PLC - JD Sports mulls equity capital raise to prepare for more acquisitions

JD Sports Fashion PLC (LON:JD.) has revised its earlier statement regarding recent press speculation concerning the possibility of the group undertaking an equity capital raise.

In a two-sentence replacement statement, published just before the market close, the FTSE 100 sports clothing retailer simply said: "The Board regularly reviews its capital structure in light of its international growth strategy and confirms that at the current time there is no further relevant information to disclose in relation to an equity capital raise."

In its initial statement, JD Sports had confirmed that it is exploring additional funding options so it can be more flexible to invest in future strategic opportunities which, it added, may lead to a non-pre-emptive equity placing. 

READ: JD Sports boasts that profits will be over £100mln ahead of expectations

On Monday night, Sky News had reported that JD Sports is considering a £400mln share placing to be launched as soon as this week.

The report said the proceeds would be used to shore up its balance sheet after the company depleted its cash pile following a £491mln bidding war for US chain Shoe Palace, half of which was funded with existing cash while the rest was paid in shares in JD’s US arm.

The funding comments come with the firm understood to have partnered with Barneys department store owner Authentic Brands to bid for Philip Green’s collapsed high street empire Arcadia Group, with administrators Deloitte expected to make an announcement on a sale soon.

The trainers and leggings seller was also recently rumoured to be bidding for Debenhams, which could have saved its 118 department stores, but on Monday boohoo Group PLC (LON:BOO) revealed it had snapped up the brand and intellectual property of the group for £55mln.

JD Sports shares closed 2.7% lower at 796p on Tuesday.

 -- Adds replacement statement, updates share price --

Quick facts: JD Sports Fashion PLC

Price: 780.8 GBX

LSE:JD.
Market: LSE
Market Cap: £80.73 m
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